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Saturday, November 01, 2014

Saturday blah-blah

Morning ... trying to force myself to be discipline and waking up early. These days I will sleep till 7am ... used to wake up 4.30am to read and learn when I was new in markets ... hmmm ... in 2008? After years ... I started to wake up around 6am ... and now ... 7am? That is lack of discipline!!

So, I m going pull up my socks ... and prepare to be a better trader. Going to make my working-space as cozy as I like and I needed to stick to my focus ...

Just do it.

Last night, I had an e-meeting with my trading group and opened it to ''public''. Yes, I pointed out 5 trading mistakes most of us done before and will continue to do. For one, I think I have done almost all the mistakes written in many trading books. Am I getting wiser ... or just simply dumb enough to repeat the similar mistakes again ... and again? We shall see...

I have told everyone ... and for the past 2-3 weeks, I was writing about loser-retailers habits ... and newbies. As I was from that stage merely 5 years ago ... I could understand how naïve newbies in market could be.

Definition : A newbie is a person who is new to trading financial markets, with less than FIVE years experience.

So, I have done my first five year ... I was calling myself newbie till last year, few of those trading kakis joked ... if I am newbie, how about them leh?

Trading is NOT based on years in market. What is the point being so long in market yet losing money or never really learn much about trading? What is the point reading so much(books, forums etc etc) but never apply in our trading system?

Anyway, I am in the novice level now ... after done my 5 years being a newbie, trying out many things ... experimenting, exploring, experiencing .. what trading is all about. It is one hell of adventure which I never thought of ... the ups and the downs ... especially the down-side and when I need to clear and cut-loss back in 2008.

Today, I am slightly wiser ... and I m no longer a newbie. I read many books and trying to follow many rules rigidly. I used a LOT of common sense which is not common in trading stock-markets. I am for sure ALL of us ... going into markets, thinking of profits or gaining some money. But .. not me. I went into market, preparing to lose ... and lose it all. Huh? Stupid, right?

There is simple no other way in that ... heck with those easier said than done .. such as trade with trend, cut your losses short ... let your profits run. Control your emotion ... blah blah blah ... you think I don't know meh? Yes ... it is easier said than done. ASK anyone genuine, some real traders and good ones around. Mixing with lousy noisy traders will cloud your thoughts, views ... and you are NOT learning ...

Some trading mistakes that I shared last night :

1. Do not listen to tips

There you are. No common sense newbies or retailers will ask around if Dnex or SMRT can buy or not? These retailers are TOO LAZY to even bother to learn, and if I could just gamble that SMRT will be next Prestariang ... why not? Oh yes, I forgotten the hottest IFCA ... the GST-play, remember? Silly me not to listen to those tips. Otherwise, I will be ... rich? ouch.

TIPS could be everywhere ... please DO NOT read blogs to buy/sell, ok? I think I m the only blogger around to expose some myth about trading, in real sense. Many are using blogs to promote some stocks to buy .. and letting others to push up the prices(we called it MARK-UP) and they quietly sell those stocks. Cunning ... sly ... something that I could not do. Well, it is all about MONEY ... their interests, in the expense of some GREEDY and LAZY naïve newbies. Who to blame? Hmm .. no one, actually.

With 80% of loser in markets, one could understand how easy media could move the stocks. If you are young(below 35) and new to market ... you might be reading some tips thru internet. I saw someone promoting XYZ... and many more. They used forums/blogs to attract un-informed newbies into such ...

Anyway, let me tell you a simple fact. NO ONE ... could tell you how a stock could perform. No one. Not those promoters ... not your remisier ... definitely not me. Even the economists could not tell us what will happen next ... to the financial markets.

By the way, DOW hitting new high, KLCI going to 1900 soon. Great? Yeah ... so, any tips on how I could double my capitals ... say, by end of the year? Got? Let me know ..

2. Create a trading plan and follow rules

There you are ... giving everyone a tips that majority(80%) will not do ... a trading plan. Majority buy-sell without a plan much ... it takes TIME to learn to plan. That is a serious matter ... needing years to learn that.

I need to go ... preparing to go to SC later for the talk organized by The Edge.